§ 14-320-115 - Lien of bonds -- Tax levy -- Default. - Arkansas Statutes

14-320-115. Lien of bonds -- Tax levy -- Default.

(a) All bonds issued by the board of commissioners shall be secured by a lien on all lands, railroads, and tramroads in the district. The board of commissioners shall be required to levy a tax annually and to collect the tax under the provisions of this chapter so long as it is necessary and required to pay any bonds issued or obligations contracted under the authority granted in this subchapter. The making of such levy of tax on the assessment of benefits and collection thereof may be enforced by mandamus.

(b) If any bond or interest coupon on any bond issued by the board of commissioners is not paid within thirty (30) days after its maturity, it shall be the duty of the chancery court of the proper county, upon application of any holder of the bond or interest coupon so overdue and unpaid, to appoint a receiver or to appoint the board of commissioners as receiver of the court to collect the taxes aforesaid. The proceeds of the taxes so collected shall be applied after payment of cost, first to the overdue interest and then to the payment, pro rata, of all bonds issued by the board of commissioners which are then due and payable. The receiver or board of commissioners may be directed by suit to foreclose the lien of the taxes on the lands, and the suits so brought by the receiver or board of commissioners shall be conducted in all matters as suits are conducted as hereinbefore provided and with like effect. The decrees and deeds in this chapter shall have the same presumption in their favor. However, when all sums have been paid, the receiver or board of commissioners shall be discharged as the receiver, and the affairs of the district shall thereafter be conducted by the board of commissioners as provided in this chapter.